What is the primary difference between a patent and a trade secret?

The primary distinction addressed in the correct answer revolves around the duration of protection that each form of intellectual property provides. A patent grants the inventor exclusive rights to their invention for a limited period, typically 20 years from the filing date, after which the invention enters the public domain and can be used freely by others. This time-limited nature of patents is significant as it incentivizes innovation by ensuring that inventors can profit from their inventions for a certain period.

In contrast, a trade secret consists of confidential business information that provides a competitive advantage, such as formulas, practices, processes, or designs. Trade secrets can be protected indefinitely as long as the information remains confidential and subject to reasonable efforts to maintain its secrecy. There is no expiry on trade secret protection, allowing companies to keep valuable information as proprietary knowledge for as long as they can safeguard it from disclosure.

This understanding highlights the strategic choices companies must make regarding how to protect their intellectual properties based on their business models and the nature of their innovations. Both patents and trade secrets serve distinct purposes in the realm of intellectual property law, offering varied approaches to protect innovations and competitive advantages.